- cross-posted to:
- news@lemmy.world
- technology@beehaw.org
- cross-posted to:
- news@lemmy.world
- technology@beehaw.org
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Just another scam ,nothing else
RIP our retirement accounts
It’s real fucked up that they just went “you will lose all your jobs, computing, and savings to us”
Maybe we should fucking do something about it.
Won’t someone rid us of these turbulent billionaires?
What I’ve seen indicates SpaceX will become something like 0.1% of S&P and 0.5% of Nasdaq. If a retirement fund is one of those indexes, and they get ‘forced’ to buy at 2x SpaceX’s eventual value, then that’s a loss of 0.05-0.2%. $50-200 on $100,000 principal.
Most normal people won’t notice that among the usual stock market noise. Over a hundred million account, though, it’s a huge amount of money getting funneled into the thousands accounts able to front-run the index inclusion, which means, in turn, a huge amount of money getting funneled into the dozens of VCs who got into SpaceX pre-IPO.
It’s like the scam from Office Space where they collect the rounding errors on interest.
My goodness
It’s worth less than half of zero. They don’t make money. They can’t make money, since they decided to gobble up Musk’s other money-losing companies. Why the hell is it still called Space X when their primary concern is LLMs and rage bait?
Wait, what happened? I thought SpaceX was about, well, space hardware.
His shitty ai company (xAI) bought Twitter in a huge bullshit valuation, then SpaceX bought xAI in a huge bullshit valuation. Both companies have only ever lost gobs of money under his control. And now that SpaceX has filed to IPO, we’ve seen that not even SpaceX was ever profitable, even before being saddled with two loser, completely-unrelated companies.
Mark my words, this Frankenstein SpaceX will IPO and be propped up by instant inclusion in the S&P 500, then get bought by Tesla (his only profitable company, for now) and that will be called the “biggest merger in history”. This will trigger Musk’s trillion-dollar pay package, which dilutes Tesla stock and gives him majority control, leaving investors holding stock that is now worth much less. So, he’ll end up with this big mess of a company called Tesla and have fleeced every person with a 401(k), IRA, or pension to the tune of a trillion dollars. This will all happen within a year, sooner if possible to avoid scrutiny from a possibly Blue congress.
Musk needs to move fast enough. You can see the AI bubble pop on the horizon, so it’s move now so there is enough time to cash out. And Musk figured out that selling hype is much easier than actually making a product, so now he’s all in on hype. Most of the IPO documentation are glossy pictures and pieces of text ripped from some sci-fi fanfiction. But that is enough to attract attention, and with that comes some money, and where there is money more people with more money follow.
It was until musk decided to turn it into a clearing house for his failing businesses.
It used to be, and their satellite internet is actually really good product in fact.
This IPO just stinks all around. It is a massive, unashamed pump and dump waiting to happen.
Retail investors get no real voting power. Rules and regulations were changed so that index funds are effectively required to buy into it. The price and valuation are absurd.
The end result will be the US minting a few hundred more billionaires and the world’s first trillionaire, and neither Republicans nor Democrats are standing in the way. In fact, they’re almost certainly benefiting from it themselves in some way even if they aren’t investing in it. After all, someone’s palms got greased in order to make all of this possible.
As with all the circular LLM funding, people are just rushing to get theirs before it all crashes down.
SpaceX is worth less…
SpaceX is worthless.
FTFY
I think worth less should be worthless, then comparing it to the IPO target isn’t really necessary.
Joke aside, it’s impressive if it’s actually worth half what the price target is set at. Considering the actually realistic value of Tesla is less than a tenth the stock value.My guess is that SpaceX is also closer to a tenth.
And X is literally financially worthless, it worth to Musk and friends is just as a propaganda outlet for Nazis.By more realistic values, Musk isn’t anywhere near the richest man in the world. It’s just that his assets are pumped up sky high based on lies and false promises.
According to the IPO docs, something like 90% of SpaceX’s future earnings are from its AI business, which it projects to have trillions of annual revenue. It’s a mystery to me why so many apparently serious investors are treating it like anything other than a scam.
Which is weird, since I’ve also seen claims that XAI services are not selling very well, because other services are superior.
As you write, it’s yet another scam by Musk.I see it this way: xAI is selling badly enough that they are leasing their compute to Anthropic because they know they bought enough of it for the traffic they thought they would get and it’s no where close to that… And not just by a little, so much so that they know it won’t be anytime soon and they might as well make something back for the capital they spent.
Add it to the long list of his scams. It seems like AI in general sucked I from human beings and substituted it with G … greed. 🤷
It’s a mystery to me why so many apparently serious investors are treating it like anything other than a scam.
Enter the assumption that serious investors basically consider the entire bubble/market a scam, and it becomes less of a mystery.
Because if musk has trump in on the scam they’ll make money so people think they can buy some shares and ride their coattails. I agree with you though, they’ll find a way to keep the money for themselves even if the company ends up doing well.
Isn’t this from building data centres and renting them out to other companies (e.g. Anthropic) that have AI tools/models that have at least some utility?
That’s being generous. It’s a cash incinerator.
The potential to be a global ubiquitous mobile phone provider and internet provider is pretty big. Everything else is meh in my opinion.
Most of the valuation isn’t from that though, it’s coming from AI bullshit. That’s basically unrelated.
Value is meaningless nowadays when all we can do is speak in “billions” and “trillions”. The stock market used to use “ticker tape”. The stock market is old and has been raped so many times that it does not even know what value is anymore.
Why does a gallon of milk cost seven dollars?
A gallon of milk is useful.
I think the point is more that the Space X IPO is overpriced for the same reason milk is overpriced: a bunch of rich people have been devastating everyone else’s back ends extra hard recently, resulting in an economy that is not only inflated but has a completely loony price skew.
My bank had been sending me emails about the IPO. Of course, they ARENT to warn consumers that what was once a valuable company (Space X does actually have utility and until recently was decently profitable) has been forcibly married into so many of Musk’s failures (Grok, X, pretty sure there was something else) and had it’s valuation ballooned by volatile AI hype that it’s almost certainly just an opportunity to dump an increasingly red line-item off Elon’s books and onto the
bagholdersgeneral public’s automated ETF funds (because he extorted the NASDAQ into breaking its own rules to list on an exchange that people trusted enough to not allow fraud like this that they put their retirement into auto-buying and -selling securities based on its data). NO, besides the tiny disclaimer that they put on every correspondence with their customers to research and learn about the risks themselves (which is good of them to do, but pretty sure is required by law anyway) they then go on to basically advertise how to buy into the IPO, even though it’s listed in a different country and standard retail investors like myself normally have to jump through a couple hoops before investing in global markets. It’s downright irresponsible!
Yeah but are you really gonna keep the hogs from slopping?
/shocked Pikhcua face
Well no fucking shit pal……
There is a reason that only governments do things like go into space and build bridges.
